"Competition on the European folding carton market is tough and it is not possible to make the products we make today in a competitive manner with the cost structure in the plant in Norrkoping," said Per Lundeen, Group CEO of A&R Carton AB.

In a written statement, A&R said, "The factory has been unprofitable for many years. Despite numerous efficiency enhancements and investments in operations, it has not been possible to reverse the trend. The volumes that are currently produced in the factory will gradually be transferred primarily to A&R Carton's plants in Lund and Finland in 2012. Deliveries to customers will continue without interruption."